What do you do if your business performance metrics are falling short?

What worked for me and has helped is always adding a reflection of Lean Six Sigma principles in solving this. To start with always identify the root causes using data-driven analysis. Then comes setting SMART goals and review processes for efficiency. We should also allocate resources wisely and provide training for skill enhancement where ever gap is identified . Monitoring progress / control closely, adapting strategies as needed is pivotal. If we utilize technology & encourage collaboration for innovation there is big difference we can make. At the last always celebrate incremental improvements to sustain motivation and momentum through each interaction .

In an early-stage business entrepreneur's face the challenge that almost all business metrics were based on best-guess/forecasts. Obviously, all businesses run on forecasts but are typically based on historic performance whereas in the early stages businesses you don't have the benefit of history, trend-lines etc. and therefore the challenge is to understand if something is 'going wrong' or whether it is the reality of the new business. For example, many businesses experience seasonal peaks and troughs; not always obvious until you've lived them for a few years. So, don't ignore the data. Successful entrepreneurs learn to face the facts and respond/react, but sometimes it is also to 'keep the faith' and ride whatever 'storm' it is.

Is it a blip or a breakdown? One bad day happens. See if it's a temporary dip or a consistent downward trend. Where's the leak? Did website traffic plummet across the board, or is it just a specific product category? Identify affected areas. Internal sabotage or outside forces? Are YOU changing things up, or are there external factors at play like a competitor's new ad campaign? Data detectives assemble! Use fancy tools like dashboards and charts to see patterns and trends in the data. Bonus tip: Segment the data! Look at different customer groups, product categories, or marketing channels to pinpoint the source of the issue.

In situations like these it's tempting to address everything at once, but prioritize the most critical issues impacting your core business goals. Focus your time and resources on areas with the highest potential for improvement.

Identifying the root causes of poor performance in your business involves a deep dive into the factors affecting your metrics. This process requires a systematic approach to uncover the underlying issues, beyond just the symptoms. You should analyze various aspects of your business, like operational processes, market dynamics, team performance, and customer feedback. Tools like the Five Whys technique or cause-and-effect (fishbone) diagrams can be helpful in this analysis. By understanding the root causes, you can develop targeted strategies to address these issues, leading to more effective and sustainable solutions that improve your business performance.

To tackle declining business metrics, it's essential to understand the root causes. The 5 Whys technique helps peel back layers to reveal underlying issues by repeatedly asking "Why?" until the core problem is identified. The Fishbone Diagram offers a structured way to categorize potential causes across different aspects of your business, such as processes, people, and technology. Engaging with customers, employees, and partners for their insights gives a comprehensive view, ensuring that any corrective actions are well-informed and targeted. These methods should put you back on track to make better decisions.

A empresa é fruto de um insight, que virou um plano estratégico que depois se converteu num plano operacional. É fruto da análise estática de um momento do mercado. Assim, é natural que, ao mudar alguma variável do cenário utilizado como pano de fundo para montar o negócio, seja necessário fazer algum ajuste. Possuir indicadores de mercado é extremamente importante. Mudança na economia, nos padrões de consumo, nas relações sociais impactam no resultado do negócio e devem ser medidos, na ponta dos fornecedores e na ponta dos consumidores. Isso será valioso no momento de analisar as possíveis causas de uma de desempenho de um produto, serviço ou de todo o seu negócio.

If your business performance metrics are falling short, it's time to set SMART goals! 🎯 Define Specific, Measurable, Achievable, Relevant, and Time-bound objectives for improvement. 📈 Clarify what you want to achieve, how you'll measure success, and when you'll accomplish it. ⏰ Ensure goals are realistic and aligned with your vision and mission. 🌟 Utilize tools like OKRs or KPIs to track and communicate progress. 📊 With SMART goals, you'll create a clear roadmap for boosting performance metrics! 🚀 We knew Array was ready for SMART goals when we got our initial traction, prior to that I think SMART goals can be a little too rigid for listening to PMF

Após identificadas as causas e desenhado um plano de metas e ações, é importante implementá-lo o mais breve possível. Quanto mais rápido a mudança for implementada e medida, mais rápido será estancada a causa da performance abaixo do previsto. Digo ser importante medir, pois nem sempre a resposta à nova estratégia é exatamente como prevista e precisará de um pequeno ajuste de rota. Aqui vale o bom e velho PDCA: [P] Planejar a mudança, [D] executar, [C] medir e [A] corrigir.

Encourage a mindset of continuous learning and improvement within your organization. Regularly review and reflect on your performance metrics, strategies, and operational processes to identify areas for ongoing improvement.

Flexibilidade é o nome do jogo. O mercado é extremamente dinâmico e o empreendedor e sua empresa precisam se adaptar rapidamente às mudanças. VUCA, BANI e qualquer outra definição do mercado e do mundo só reiteram a necessidade de medir o mercado, conhecer seu negócio e ter coragem para a mudança, pois o empreendedor jamais terá todas as informações necessárias para decidir, na hora da decisão. Sempre tem uma parte que é da experiência e da sensibilidade do líder empreendedor.

Metrics are hard, especially when you're starting out. A great metric meets these criteria: - Easily measurable (data is easy to access) - Clear (no debate about how it's calculated) - Gettable (you can hit it) - Totally within your control Your metrics will evolve. Maybe one day your business will evolve so that you feel "dollars of new orders" is totally within your control. But right now you might need to start with "number of prospecting calls made." Start where you are. Roll with something that feels agonizingly simple in the beginning. Then let it evolve as your business and your team grows more capable.